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Original poster

If you were FTB and could buy tomorrow, would you?

51 replies

pannikin · 04/08/2018 21:52

We are in the above situation. Mortgage application being processed as we speak (well maybe not literally, as it’s Saturday night..), deposit funds sat in our bank account, house lined up.

Have ventured onto a few threads tonight regarding Brexit/property prices dropping, and now worried we may be making a mistake. We have saved up for a long time for this opportunity, and have also been fortunate to receive some gifts from parents. I knew the interest rates had gone up, and we were happy to proceed on that basis particularly as we are applying for a relatively small mortgage (under 90k) and we really want the security for our DC after years of renting.

Would you be buying now, if it was your first chance? We are aware there may be uncertainty after Brexit which may negatively impact our opportunity to get on the ladder, which is why we’re acting now. I’m worried we’ve got it wrong!

OP posts:
HopefullyMoving · 04/08/2018 21:59

I'm not a property or financial
Expert and can't really get my head around the impact of everything ahead of us, mentioned in your OP. But the house we are moving to is a keeper. I see no reason why we would need or want to move and so we are progressing on that basis. If it were a home for, say, only the next 5 years then I would probably wait to see what happens if I were nervous about it. In our position, house prices may be inflated but it's all relative, our house sale is to. As a FTB I think if it were a house to accommodate my plans for the foreseeable (family expansion, possible career moves etc) then yes, I would buy.

Original poster
pannikin · 04/08/2018 22:02

HopefullyMoving
We are moving to a home that to be honest I can't see us ever having to move out of. It's a good size for the 4 of us, and we hope to have the mortgage paid off sooner than later.
I highly doubt we will be selling in the next 5 years, unless something happened like a marital breakdown (cannot see that happening at this moment in time!)
Like you, I also struggle to get my head round the impact of future political events and im aware the future is uncertain regardless. I hope your house move goes smoothly!

OP posts:
SwedishEdith · 04/08/2018 22:04

Are you planning to stay put? Can you deal with 7% interest rates in a few years time? (No idea if that will happen but it might. Argument is that rates will creep up now to give space for cuts post-Brexit though so...). Then, yes, I'd buy now.

CarlyJayne1987 · 04/08/2018 22:05

yes absolutely. you cannot beat the stability of owning

If you are planning to move (or need to) i less than 5 years - careful what you buy.

Im not planning to move to be honest 10+ years with schools etc - but if i wanted to move i would still buy a house but not take a humungous mortgage.

StylishMummy · 04/08/2018 22:05

Rents will always outstrip mortgage rates and you're building equity over that time. You're buying a stable family home, rather than a high risk investment.

I'd always buy if possible in your circumstances

Cheeseislife · 04/08/2018 22:10

I'm a ftb but we haven't found anything we like, so have just been saving and waiting. Gave up viewing everything that came on as it got boring after a while! In the South East so no chance of a small mortgage unfortunately and if prices do crash our deposit would likely be swallowed up, however at the same time we don't plan to move so would get a relatively long fix.

Staying with family means we can save well and still do mostly what we like, but I'd swap the financial leeway to have our own home again as I feel like I've lost my identity after renting for almost a decade and then moving back... I feel stifled and at this point in time I'd rather have money worries than be worrying about my sanity Sad.

If you have a good deposit and can get the kids into good schools and aren't in London/SE where the falls will always be big because of the gains, I'd go for it. Good luck whatever you decide.

QuoadUltra · 04/08/2018 22:17

Buy, but make sure that you can absorb interest rate rises.

Ignore all the Brexit crap. But interest rates are historically low even though they have just gone up a bit.

Original poster
pannikin · 04/08/2018 22:25

We will be ok even if interest rates rise significantly more I think - our mortgage repayment is going to be low and we have a 25% deposit so we are planning on making overpayments as much as we possibly can. Have spent years paying ridiculously high rents, can't believe how cheap the mortgage is in comparison. We know that you have to factor in things such as house maintenance, insurance, boiler going awry, and so on, even so paying £400 a month compared to £950-£1150 in rent and coughing up fees every time a landlord decides to sell is like a dream.

cheese I hope you manage to find something soon. We started provisionally looking at the start of this year but it's only the last two months or so we've been 'seriously looking'! It can take a while and it's definitely not something you want to go into unless you're 100% sure as it's a big commitment.

OP posts:
Original poster
pannikin · 04/08/2018 22:27

No plans to sell or move for a long time (if at all) after we've bought. The house we have gone for is the perfect size for us, no more kids planned or wanted. Near to decent schools and nearer grandparents than we are now so everyone's pleased really.

OP posts:
Troels · 04/08/2018 22:41

Yes because when we buy our house we buy to live in for a very long time, not to sell in 5 years. Last house we were in for 20 years. This house 5 years so far, no plan to move for another 5 to7 years.

shabbycaddy · 04/08/2018 23:11

When we bought our first house in 2009 I thought it was important that if one of us lost our jobs/ couldn’t work full time we could still pay the mortgage and pay bills. Few years later two children arrive so reduced works hours kick in, then our then 4 year old is diagnosed with cancer, so my wife is now a carer. Luckily one wage now pays easily the mortgage and bills etc. However my advise is never mortgage yourself to the max with two wages if you have kids/plan to have them, you never know what could happen.

GreenTulips · 04/08/2018 23:17

Well you'll save £30,000 on rent in the next 5 years alone

Can't see a downside

Alexalee · 04/08/2018 23:40

With all you have said I would definitely buy. Haggle hard though, you are in a good position as a first time buyer.
With that big a difference between rent and mortgage, rates would probably have to go over 15% for you to be worse off

Emotionaleater · 04/08/2018 23:55

We are in the same position, FTB, and we have decided to buy. In fact we’ve put an offer in, waiting to see what happens. We need a house, no more pillar to post and somewhere that is ours. I can’t see us moving for a good fair few years, so with that in mind we’ve decided to just go for it 😁

Scrolblewomp · 04/08/2018 23:57

Yes, a mortgage is just rent you pay to the bank.'if you find s house you love, buy it. If you don't, sit tight.

BubblesBuddy · 05/08/2018 07:52

So you are only investing £120,000? Any falls won’t impact you much. The main thing is that you have your own property. If we keep thinking about losses and putting it off, landlords will keep taking your money.

There probably won’t be financial gains at this level of purchase. It’s obvioudly not in a buoyant area or the prices would be higher. It’s a no brainier to buy really. Even a 10% fall is only £12,000 and that’s not much over a years rent which you would have thrown away to the landlord.

If this house is to be your home, buy it. You won’t make a quick buck though. Negotiate on the price if you need to. If you want a better investment, in terms of return, buy an ISA. But you cannot live in it.

Treacletoots · 05/08/2018 08:00

It's a no brainer isn't it?

Renting is only going to get more and more unstable. The latest taxes on landlords is forcing good landlords to sell their properties as they can no longer claim the mortgage interest as an expense, which is clearly is!

Unscrupulous landlords however won't care, they either wont declare or they'll raise rents to cover for it.

No one knows what the future holds. And as someone who bought at 18, made a ton, lost a bit when the market crashed ... O can still say you'll always come out on top as your mortgage is being paid off all the while.

As others have said as long as you're not both mortgaged to the max and can cover if the unexpected happens i.e. jobs come and go and interest rates I have personally seen as high as 8.5% ( I'm 40 now)

Good luck and enjoy your new home

JustLurk1ng · 05/08/2018 10:54

I agree - an absolute no brainer - don't let the brexit fever put you off - sounds like you are in the perfect position how exciting!

blinkineckmum · 05/08/2018 11:18

Yes, buy. Especially if you don't need to move. Fix your repayments for 5 years and aim to overpay when you can. You aren't borrowing an awful lot so do it.

BoEbrexit · 05/08/2018 15:39

I came on here to ask the same thing, but in my case I might have to move within 5 years. (I think I'm still going to go ahead).

But as you are planning on staying put for the foreseeable future, and your rent looks much higher than mortgage, I'd say go for it. Whereabouts are you buying?

FabulousSophie · 05/08/2018 16:01

Really, only FTBers can answer your question without bias. All other answers will be far too prejudiced by vested interests.

batshitbetty · 05/08/2018 16:09

If it's a choice between paying my own mortgage, or someone else's by paying rent, I'm paying mine every time. Rent is dead money, I'd much rather it went towards an asset

Obviously if you are over stretching and can't manage if interest rates go up then I would think differently

We bought a couple years ago and could still end up in negative equity if prices really plummet, but this house will do us for the next 8-10 years so while it would be crap it's not the end of the world - we intend on doing a 5 year fix when our current 2 year deal runs out in a couple of months.

ThroughThickAndThin01 · 05/08/2018 16:23

a mortgage is just rent you pay to the bank

No it’s not. You end up with the product. It means you won’t have to rent forever .

SporkInTheToaster · 05/08/2018 16:25

Yes, I would.

loveka · 05/08/2018 16:54

I would. But I would ensure I got a 5 year fix as I am risk averse!

I have just bought. I do worry that we paid too much (nothing else in the same area has gone under offer in the 6 months since we put our offer in) I think we paid around £20k too much. We have no intention of moving though.

I